How to Prove Cybersecurity ROI to Your Board
Why Cybersecurity is Always a Hard Sell
Cybersecurity doesn’t generate revenue. It doesn’t launch new products. It doesn’t add customers.
At least, that’s how most board members see it.
To them, it’s just another expense - like office rent or printer paper.
Necessary, but not exciting.
But here’s the problem: when cybersecurity is treated as a cost instead of an investment, budgets get cut. And when budgets get cut, security gaps open up. That’s when breaches happen, regulators step in, and lawsuits start flying.
The key to fixing this? Stop talking about security in technical terms. Start talking about it like an investment - one that saves money, protects revenue, and reduces risk.
Here’s how to prove cybersecurity’s ROI in a way your board will actually listen to.
Step 1: Show How Security Saves the Company Money
If you’re asking for a $2 million security budget, you need to show that it’s saving more than $2 million.
Most companies don’t track this. But you can.
How to Calculate It
Find the Cost of a Cyber Incident - Look at industry breach reports. If similar companies face an average breach cost of $5 million, that’s your baseline risk.
Estimate the Likelihood of an Attack - Use historical data or industry reports to determine the probability of a major incident in a given year (say, 20%).
Show How Security Reduces This Risk - If your investments cut the likelihood of a breach from 20% to 5%, you just saved millions.
Example:
Company risk without strong security: 20% chance of a $5M breach = $1M expected loss per year
With improved security: 5% chance of a $5M breach = $250K expected loss per year
That’s a $750K savings - meaning security investments are paying for themselves.
Now, instead of asking for budget, you’re showing how cybersecurity prevents financial losses.
Step 2: Show How Security Protects Revenue
When security works, nothing happens. No downtime. No lawsuits. No lost customers.
But when security fails? The financial damage can be massive.
How to Prove It
Find Your Company’s Revenue Per Hour - Work with finance to calculate how much money your company makes per hour.
Estimate Downtime Costs - If a ransomware attack takes systems down for 24 hours, multiply that by revenue per hour.
Show How Security Reduces Downtime Risk - Highlight investments in incident response, backup systems, and real-time monitoring that minimize downtime.
Example:
Company generates $500K per hour
A ransomware attack could cause 24 hours of downtime = $12M loss
Security investments reduce downtime risk by 80%, preventing a $9.6M potential loss
Now, security isn’t just a cost - it’s business insurance that keeps revenue flowing.
Step 3: Show How Security Avoids Fines and Lawsuits
Regulators don’t care about excuses. If you lose customer data, you will get fined.
How to Calculate the Risk
Look at Recent Fines in Your Industry - Find cases where companies paid millions for security failures (GDPR, CCPA, PCI-DSS violations).
Show Your Compliance Risk - If your security controls don’t meet requirements, you’re in the same danger.
Show How Security Investments Prevent This - Highlight investments in compliance automation, data protection, and risk assessments that keep the company out of trouble.
Example:
GDPR fines can be 4% of annual revenue
If your company makes $1B per year, a data breach could mean a $40M fine
Investing $2M in compliance saves $38M in potential legal costs
At this point, the board isn’t asking why they should fund security. They’re asking how fast they can approve it.
How to Use This in Your Next Board Meeting
Forget the technical slides. Bring numbers. Show financial impact. Speak in business terms.
Instead of saying:
"We need $2M for endpoint security and SIEM upgrades."
Say:
"This investment will prevent an estimated $10M in losses from breaches, downtime, and fines."
That’s how you move cybersecurity from an expense to an investment. And that’s how you get the budget you need - without the usual pushback.